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Here’s What Hillary Clinton Has to Say About Small Business

Last Updated on October 25, 2016

Meredith is Editor-in-Chief at Fundera. Specializing in financial advice for small business owners, Meredith is a current and past contributor to Yahoo!, Amex OPEN Forum, Fox Business, SCORE, AllBusiness and more.

Debate night “Round 1” and “Round 2” has come and gone, and the 2016 election is fast approaching. Everyone from college students to retirees are glued to their seats. Small business owners should be watching, too.

Clinton also believes that the federal government needs to start being more supportive and responsive to small business needs. She thinks that more incubators and training programs are needed to get the engine of the American economy firing on all pistons.

“Level the playing field”

Back when she was in Cedar Falls in 2015, Clinton said, “I want to be a small business president.” During the 2016 campaign, she’s stuck to her guns.

Clinton wants to level the playing field so all people can start and build a company, including women and minority businesspeople who face additional barriers. She believes the deck is still stacked to favor those on top, and that the average American is not getting a fair chance at accomplishing his or her dreams.

Her appreciation for small businesses stems from her childhood:

“When my dad ran his small printing business—he printed drapery fabrics in Chicago—it put food on the table; it gave us a good, solid, middle-class home and lifestyle. And I don’t think it’s old fashioned to say that’s what I want for every family that wants to work for that here in our country today.”

This is precisely why she’s developed a detailed strategy to make it easier for entrepreneurs and small business owners to achieve their dreams.

“It should be like setting up a lemonade stand”

Hillary Clinton’s solution is thorough and straightforward—and addresses each of the problem points she’s discussed so far on the campaign trail. Here’s what she promises:

Cut the red tape

While that probably won’t happen, there’s no reason for it to take longer for someone to start a business in America than in Denmark, Canada, or South Korea. Clinton will incentivize states and local governments to simplify the process, remove unnecessary licensing, and lower unreasonable fees.

For instance, roughly 25% of workers require occupational licensing. While this is necessary, the burden and cost of getting a license can deter small businesses from starting or expanding (especially if other states require a unique license). Standardizing and streamlining the licensing process across states will solve this issue.

Make financing easier

Under Clinton, small business owners—including women and minorities—will enjoy easier access to financing. As many as 82% of startups fail due to bad cash-flow management. But this can be fixed with easier access to money.

Lifting the lending restrictions placed on credit unions and community banks is a no-brainer solution. Additionally, to ease the process for recent graduates, Clinton will allow postponement of student-loan payments without interest accumulation.

Secondly, she wants to quadruple the tax deduction startups can take for expenses (it’s currently capped at $5,000; Clinton would increase it to $20,000). All of this will greatly reduce the cost of starting and running a small business.

Make it easier to provide health care

For companies with fewer than 50 employees, Clinton wants to offer a health care tax credit (if they provide coverage to workers). This will be accomplished through the Affordable Care Act. Additionally, to ensure there are no roadblocks in getting this credit, Clinton plans to simplify eligibility requirement and complex phase-out rules.

Enable expansion into new markets

Clinton will encourage innovations that open new markets—like Etsy and Amazon—in America and around the globe. To help make this happen, she will provide programs for up to 50,000 entrepreneurs in underserved communities throughout America. Additionally, she will defend and support the Export-Import Bank, a crucial supporter of small businesses that operate in global trade.

The presidential candidate also plans to introduce a five-year, $275 billion infrastructure plan to improve airports, ports, bridges, and roads. This will help set up American small businesses for success in the 21st century.

Provide protection

Not getting paid or getting cheated is a big problem for small businesses. In fact, 64% of small businesses have to deal with payment delays.

To combat this issue, the presidential candidate plans to stop the practice of large companies using pricy legal maneuvers to refuse making payment. She will give small businesses more recourse to get what’s owed them.

“What’s good for women is good for America.”

Hillary Clinton could become the first woman president of the United States. She has plenty of ideas about tackling women’s issues. This could be good not just for women entrepreneurs, but the economy as a whole.

To ensure parents don’t have to choose between work and family, Clinton plans to make childcare more affordable. She’ll also try to pass better paid leave laws through Congress. This will place less pressure on women across the country and enable them to pursue their business dreams.

What industries does Hillary Clinton plan to ignite?

Clinton believes that by stimulating specific industries, the American economy can get rolling again.

Infrastructure

Clinton’s five-year, $275 billion infrastructure plan should create opportunities in lots of industries, including construction, raw materials, and real estate. Whether you run a concrete business or engineering firm, you could directly benefit from such a plan. It will also help small businesses involved in any sort of trading.

Energy

Here’s Clinton’s goal for energy: tackle climate change and make America the world’s clean energy superpower. That’s pretty ambitious. She claims this will create millions of good jobs. If she can implement a plan to generate enough green energy to power every U.S. home, undoubtedly small businesses associated with the energy field will benefit.

Manufacturing

Like her Republican opponent, Hillary Clinton also places importance on manufacturing in America. Specifically, she will make a $10 billion investment to start a “Make it in America” partnership. This will incentivize businesses to keep jobs here—and even bring jobs back. Small businesses in the manufacturing sector just may have more opportunities with such a plan.

Technology

The Democratic candidate plans to invest in digital infrastructure. For instance, she hopes to get every single American household connected to high-speed, affordable broadband by 2020. She wants to deploy 5G wireless to enable the Internet of Things. Investing in STEM education and computer science will be one of her biggest priorities, too. All of this could lead to a more productive economy, which would be great for any business.

How will these projects be funded?

Of course, everything in American politics is easier said than done. The billion-dollar question is: where will these funds come from?

What about wages?

Some say Clinton wants a $12 per hour minimum. But she has said she supports efforts for $15. Yet there is much debate as to whether a higher minimum wage will actually help or hinder small businesses and the economy.

Those who are against a higher minimum say it will raise labor expenses and stifle small businesses. Unemployment would skyrocket and the overall economy would slow down. That would spell trouble for anyone as a small business owner.

Key Endorsements

Endorsements can tell you a lot about a candidate. Who thinks they’re right? Who gets inspired?

Here’s a (very) brief list of some of Hillary Clinton’s notable endorsements.

It’s your vote

Remember: your vote is your decision. If you’re a small business owner, you need to understand what each candidate plans to do. You should also know how other proposed policies will affect your company.

In the end, who you choose is up to you. Just don’t go in blind—especially knowing how important your small business is to you.

Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those
of the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.

Meredith is Editor-in-Chief at Fundera. Specializing in financial advice for small business owners, Meredith is a current and past contributor to Yahoo!, Amex OPEN Forum, Fox Business, SCORE, AllBusiness and more.